Reference no: EM132789999

Problem 1: Consider what you have learned about the time value of money, suppose the government proposes a relief package in an urgent attempt to bail out virtually all industries across the board and offset the economic damage unleashed by the coronavirus [COVID-19] crisis episode, and indeed, keeps its promise.

Problem 2: By approximately what factor (in the long-run) are businesses likely to discount their negative cash flows, in order to work out how much is needed to level their current losses?